Do You Know the Difference Between a Mobile, Manufactured, and Modular Home?

So, a couple of weeks ago we posted the new rendering of our 2100 Series Home that will be shown at the International Builders Show. We are pretty excited about this targeted LEED Platinum Prefab Home, and while the response was overwhelmingly positive, we noticed that one of our fans shared the rendering on Facebook, and received this comment:

“It’s just a fancy way of portraying the “mobile home”. But yeah, LOVES it”

As I read this comment again, I recollected the time I had to explain to my mother-in-law that I didn’t build mobile homes for a living. Then I remembered my wife having to explain the same thing to a friend of hers. As I pondered these conversations, I realized we needed to step up our game in educating people about the difference between the different types (mobile, manufactured, modular) of prefab homes out there.

The term “Mobile Home” began being used in 1956 when this style of home was produced in sections that were 10 feet wide. At the time, they were treated more like a motor home or a trailer by lenders and tax agencies. In 1974, the Federal Government began to regulate the construction of these homes by instituting the Federal National Mfd. Housing Construction and Safety Standards Act. Manufacturers became accountable to the Department of Housing and Urban Development (HUD) for the quality and the structure of their homes. Starting June 15, 1976, Mobile Homes were bound by increased safety and construction standards, and began to be called “Manufactured Homes.”

While both “manufactured” homes and “modular” homes are built in a factory, that is where the similarity ends. Here is a breakdown of the differences:

MANUFACTURED (MOBILE) HOMES

• A manufactured home is built to HUD Code (much less stringent than the codes that regulate modular homes).
• Their structure is not required to be approved.
• Manufactured homes require special financing, they have maximum amounts that can be loaned, and generally have a fixed term for 20 years. HUD explains it here.
• Manufactured homes are required to be built on a non-removable steel chassis, and they are transported on their own wheels.
• Manufactured homes often decrease in value over time.
• Local covenants and often exclude manufactured homes.
• Manufactured homes are only capable of being a single story dwelling.

 

 

MODULAR HOMES

• Modular homes are built to the same codes (UBC/IRC) as “stick-built or site-built” homes.
• Building inspectors are required to certify that a modular home’s structure is built according to the appropriate state or local code.
• Modular homes are financed by conventional mortgage products.
• Sections are transported to the building site on truck or trailer beds, and then joined together by local contractors.
• Modular homes will increase and decrease in value the same as a traditionally built home.
• Most developments will allow modular homes. Some do not, but in those cases the restrictions are often due to confusion about the difference between modular homes and manufactured homes.
• Modular homes can be stacked, and thus be multi-story.

 

Does this clarify the difference?  We’d love to hear from you.